Trump is about to cut interest rates

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "There is a & nbsp; new Trump -o-meter in the city but our weekly Trumponomics discussion is about a familiar topic: possible financial damage caused by President Trump's trade policy. "data-response time =" 15 "> There is a new Trump o meter in the city , but our weekly Trumponomics discussion is about a familiar topic: possible financial damage caused by President Trump's trade policy.

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.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Federal Reserve Chair [n / a] Jerome Powell signaled in Congress's testimony This week, the central bank is almost certain to cut interest rates later in the month. "Uncertainty about trading tensions and concerns about the strength of the world economy continue to weigh on the US outlook," said Powell. He indicated that the case for a supplement has "strengthened". It's about as declarative as a Fed chair can be, and that means that interest rate cuts come. "data-reactid =" 16 "> Federal Reserve Chair Jerome Powell, in Congress's testimony this week, indicated that the central bank is almost certain to cut interest rates later this month." Uncertainty about trading tensions and concerns about the strength of the world economy continue to weigh on US economic prospects , "Powell said. Over the last few weeks, he has indicated that the case for a supplement has" strengthened. "It's about as declarative as a Fed chair can be, and that means interest rate cuts.

<p class =" canvas canvas -text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Trump must be cheering. He has been & nbsp; hectoring & nbsp; In order to cut prices for several months, the protocol of breaks political press on the central bank director. Lower prices, Trump assumes, to stimulate economic growth by making it cheaper to borrow. It can help Trump's reelection efforts. Powell insists that there is a strong economic case for cutting prices, and he does not just make Trump's bid. Most investors believe in him. "data-reactid =" 17 "> Trump will cheer. He has hectored the Fed to cut prices for months, breaking the protocol by putting political pressure on the central bank chief. Lower prices, assuming Trump, will stimulate economic growth by making it cheaper to It can help Trump's re-election work. Powell insists there is a strong economic case to cut prices and he not only makes Trump's bid, most investors believe in him.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Stocks hit new record highs on Powell's poor outlook. But something feels wrong. The Fed is likely to cut prices because it's worried about the economy. It's bad news, not good. And part of the reason why cut rates is to counteract the negative effects of the president's own policies. This is the bizzaro world, which is why this week's Trump-o-meter reads the WEAK, the third lowest grade. data-response time = "18"> Shares hit new record highs on Powell's deep outlook. But something feels wrong. The Fed is likely to cut prices because it's worried about the economy. It's bad news, not good. And part of the reason for the cut rate is counteracting the negative effects of the president's own policies.

<p class = "canvas-atom clay text Mb (1.0em) Mb (0) – sm Mt ( 0.8em) – sm "type =" text "content =" While still in the midst of a trade Trump complains that China has not yet reinforced the purchase of US agricultural products, as promised. China recently said it would impose sanctions on US defense contractors sell weapons to Taiwan, which will be the first, while simultaneously taking the two countries tariffs on US farmers and increasing the cost of businesses, Powell calls trade tensions "cross-currents" and says they are starting to clear business understanding and have a negative impact on economic data. "data-reactid =" 30 "> While still in the midst of a trade watch" with China, developments are worrying. Trump complains that China has not yet set up US agricultural products, as promised. recently that d One would require US defense vendors to sell weapons to Taiwan, which would be a first. Meanwhile, they set the two countries tariffs on US farmers and increase the cost of businesses. Powell calls trade tensions "cross-currents" and says they are starting to clear business understanding and adversely affect financial data.

Cuts and other key banking support contributed to the shares being restored after the recession that ended in 2009. But that happened when the economy came out of a recession. It's another story when the economy goes into a recession. The last time the Fed shifted from raising prices to cutting them was in September 2007. The S & P 500 stock index hit a record high a month later – then it went into a deep swim. It did not recover the 2007 levels before 2013.

A recession does not currently appear at the moment, and that is why economists say the Fed rate would now be an insurance or booster deposit. But if the economy needs a boost, it's a bad time for Trump to practice uncertain trading. If Jerome Powell is concerned, the rest of us must be too.